FITCHBURG -- Workers' Credit Union will give back over $2 million to its member next month, a first for the credit union.
"We are really pleased to be able to make this payout to our members," said Doug Petersen, president and CEO of Workers' Credit Union. "This is a first for us and, as far as we know, we are the first credit union based in North Central Massachusetts to pay this type of dividend."
Petersen says the board of directors approved the annual payment because the credit union is doing well. "Our GiveBack Program is Workers' Credit Union's unique way of sharing the financial success of the credit union with our personal members who do business with us. With this program, when we do well, our members will reap the financial benefits."
This is the first time in its nearly 100-year history that the credit union has made a payout. Petersen says the credit union's capital ratio is in excellent shape, at 12.5 percent, which far exceeds regulatory standards. Consequently, surplus income can be returned to members. "We are in the position to be able to return extra income to our members, who made this GiveBack Program possible because of their support."
Even with the payout, the credit union continues to invest in new technology, products, facilities and services so it can continue to meet the financial needs of all its members. "The board and management carefully manage its resources, so we strike the right balance for our members -- delivering the latest products, outstanding service, and technology to improve the daily lives of our members," Petersen said. "This is a fundamental principle of a cooperative institution, working exclusively for the benefit of the members, including returning income through our GiveBack Program."
Credit union members will receive the payout they qualify for in February. The amount is based on the average balance in all eligible deposit and loan accounts.
Petersen said the board hopes to make the payment ongoing. "While the credit union will strive to pay the dividend annually, it will be a decision that is made each year by the board of directors, based on how well the credit union performs financially."